NEWS / Foreign Exchange

U.S Market Update

• *** ECONOMIC SCHEDULE ***
• UK BOE??™s Barker to speak [7:45 et]
• CA Aug Retail Sales: 0.5%e || -0.8% prior |||| Retail Sales Less Autos: 0.3%e || -0.3% prior [8:30 et]
• US Treasury??™s Paulson to speak on relations with China [8:30 et]
• US Oct Richmond Fed Manufacturing Index: 7e || 14 prior [10:00 et]
• *** US POST CLOSE ***
• FED Evans: Extreme housing toll on the economy is unlikely [19:00 et]
• FED Evans: Fed needs to calibrate policy for low-risk events [19:00 et]
• FED Evans: Still a way to go before markets normalize [19:00 et]
• FED Evans: Optimistic on improvement in inflation [19:00 et]
• FED Evans: Chicago Fed lowered its 2008-2009 inflation forecast [19:00 et]
• FED Evans: Excluding housing the economy is performing well [19:00 et]
• *** EUROPEAN NEWS OVERNIGHT ***
• FR Sep Consumer Spending: M/M 0.1% v ??“0.5%e || Prior M/M revised from 1.0% to 0.7% |||| Y/Y 5.8% v 4.8%e [highest since June of 2000] || Prior Y/Y revised from 3.6% to 2.9%
• IT Oct Consumer Confidence: 107.3 v 107.0e
• IT Aug Retail Sales: M/M 0.2% v 0.1%e || Prior revised from ??“0.1% to 0.0% |||| Y/Y 1.4% v 0.4%e
• EU Aug Industrial New Orders: M/M 0.3% v 0.9%e || Prior M/M revised from ??“4.0% to ??“2.6% |||| Y/Y 5.1%% v 6.0%e || Prior Y/Y revised from 10.9% to 12.0%
• GE Economic Ministry: Inflation will decline to 1.9% on average in 2008 vs. 2.1% in 2007; Y/Y inflation rate could hit just under 3.0% by the end of 2007 [wires citing press]
• FR Finance Minister: French inflation is under control
• FR Finance Minister: Euro level reflects global imbalances
• FR Finance Minister: Hopes that FX markets keep hearing the US message regarding the strong Dollar policy
• *** ASIAN NEWS OVERNIGHT ***
• NDRC's Xiaoguang: China's CPI is likely to rise around 4.3% in 2007 [Chinese Securities Journal]
• NDRC's Xiaoguang: China??™s GDP is likely grew by 12% y/y in Q3 [current consensus estimates are 11.5%] [Chinese Securities Journal]
• BOJ Inaba [executive director]: BOJ needs to prevent another Japanese economic bubble
• BOJ Inaba: Should not depend on monetary policy for FX adjustments
• BOJ Inaba: Pre-emptive monetary policy is important
• BOJ Inaba: Monetary policy should be focused on price stability
• Bank of Korea: September decision to keep rates on hold was unanimous
• Bank of Korea: Need to minimize the fallouts from US sub-prime
• Bank of Korea: Price pressures are mounting as oil prices rise
• JP MOF: G7 sent a firm message on tackling sub-prime problems
• AU Government forecasts FY underlying surplus of A$14.4B
• HKMA sells HK$750M worth of Dollars to defend US Dollar peg; First time since May 2005